ROE = Net Income/Equity = EPS/BPS = PBR/PER = Indicates how much profit an entity has made from its equity
The most important indicator with PER
To make it easy, I started my business with my money of 5 million dollars, and the net income of 1 million dollars came out. Then the ROE is 10/50 *100 = 20%.
The higher the ROE, the better, right?